Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 6 May 2017

US unemployment lowest rate since May 2007

Jobs growth ticks on

The US economy beat expectations of +185,000 jobs in April to add +211,000 positions, according to the Bureau of Labor Statistics (BLS). 

After moderate revisions the economy has created sturdy enough average jobs growth of +174,000 over the three months from February, in spite of the weak result in the month of March (revised to just +79,000).

Average jobs growth over the year to date also remains steadily solid.

And over the past year the economy has added 2.24 million jobs.

The employment to population ratio is also at its best level since February 2009 at 60.2 per cent.

Unemployment down to 4.4pc

The rate of job creation continues at a pace sufficient to push down the unemployment rate, which has fallen to its lowest level since May 2007 at 4.4 per cent. 

Despite the ongoing decline in the unemployment rate, inflationary pressures have failed to materialise. 

Average hourly earnings increased by 7 cents to $26.19, to be 2.5 per cent higher over the year.

Some food for thought here for Australian analysts believing that "full employment" might be reached at an unemployment rate of 5 per cent!

The wrap

"I love it when a plan comes together" in the words of George Peppard.

Overall, it was a decent result, with the Federal Reserve widely expected to hike interest rates in due course.

The Aussie dollar is now trading at just under 74.2 US cents.